- 27 October 2022
- Posted by: Cryptovalues
- Category: Central Banks, World News
The Central Bank of India will adopt a gradual approach about the launch of the digital rupee.
The Reserve Bank of India will adopt a phased approach about the introduction of digital currency into its economy, considering that it must meet standards for monetary policy, financial stability and efficiency of currency and payment systems.
The Reserve Bank of India discussed the plan in its annual report highlighting the risks and benefits of a CBDC, and the Finance Act of 2022 has been enacted and serves as the legal framework for the launch of the asset.
The goal is ambitious, but according to Finance Minister Nirmala Sitharaman, the CBDC after the announcement on the launch of the work came at the beginning of the year, could see the light of the digital rupee by the end of the year. She further stated that the benefits of a CBDC are many and that India is a country at the forefront of payments technology: The country already has a large user base for digital and app-based payments, just like China.
The U.S.-based company FIS turns out to be one of the external companies that is lending the necessary help to the on-time implementation of the project, where online and programmable payments, financial inclusion and cross-border CBDC payments will have to come close to perfection before launch.
At the cryptocurrency level, India follows the United States among the countries that hold the most digital currency.
Recall that India, after confirming last year that it would not recognize bitcoin as a currency, reassured investors that cryptocurrencies would not be banned, but rather took the opportunity to tax them, perhaps even exaggerating, so much so that a 30 percent tax rate has been set on any kind of earnings that will be made from this sector, a significantly higher percentage than is applied to stocks, for example.
While the excessive onerousness of the taxation has raised controversy, the aspect of legalization rather than a ban has prevailed, causing Bitcoin and other cryptocurrencies to pull relief on a fast-growing market with more than a billion potential users of the compartment.